Accra: In a renewed effort to support cocoa farmers, Ghana has raised the fixed farmgate price for the second time in the 2024/25 season. President Nana Akufo-Addo, addressing the Farmers’ Award Ceremony on Friday, announced that farmers will now receive 49,600 Ghanaian cedis (about $3,062) per metric ton. This marks an increase from the initial 48,000 cedis set when the season began on September 1.
The price adjustment took immediate effect, confirmed a spokesperson for Ghana’s cocoa marketing board (Cocobod). October reports of a potential price hike had prompted some farmers to hoard their beans, which could impact global supply levels. This price increase is part of the government’s strategy to improve farmers’ livelihoods and curb the ongoing smuggling issue, which Cocobod officials claim cost Ghana over a third of its cocoa output in the 2023/24 season. The production shortfall contributed to a significant rise in global cocoa prices, as Ghana’s output hit a two-decade low.
President Akufo-Addo also announced new educational support for cocoa farmers’ families, directing Cocobod to offer scholarships to farmers’ children attending tertiary institutions. While these measures aim to benefit farmers, critics question the timing. Bright Simons, vice president at the think tank IMANI Africa, argued that the policies may be “driven primarily by electoral motives,” given the price hike’s minimal offset against high inflation and currency depreciation.
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The December 7 election will see Akufo-Addo’s tenure conclude, with Vice President Mahamudu Bawumia of the New Patriotic Party and former President John Mahama of the National Democratic Congress vying for office. Recent polling by Global InfoAnalytics suggests Mahama holds an edge, with economic pressures and the nation’s ongoing financial crisis weighing heavily on the current administration.
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Ghana, the world’s second-largest cocoa producer after neighboring Ivory Coast, remains a major player in the global cocoa market, where local policies have far-reaching impacts.
